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A company incurs $4451000 of overhead each year across three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works
A company incurs $4451000 of overhead each year across three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2000 purchase orders, works 50000 mixing hours, and performs 1500 tests per year in producing 200000 drums of product Goo and 600000 drums of product Slime. The following data are available: Activity Cost Pools Ordering and Receiving Mixing Testing Estimated use of Driver Activity Cost Pools Ordering and Receiving Mixing Testing 2000 50000 1500 Production information product Goo is as follows: Estimated use of Driver 400 20000 500 Cost $1020000 1225000 1338000 If ABC is used, what amount of overhead will be assigned to Goo?
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